Tel Aviv’s Startup Ecosystem Ranked 4th in Startup Genome’s 2025 Global Startup Ecosystem Report

June 2025: Even during a year marked by extraordinary challenges, Tel Aviv's startup community continues to show what resilience looks like in practice. The city's spirit of innovation has not only endured but also advanced even when the war weighs heavily on daily life in Israel. This month, Tel Aviv has been named the #4 Global Startup Ecosystem in Startup Genome’s 2025 Global Startup Ecosystem Report, unveiled at VivaTech in Paris.

The report, which draws on data from over 5 million companies across more than 350 cities, highlights Tel Aviv’s strength across multiple measures: the ecosystem generated $198 billion in value between July 2022 and December 2024, and secured a top ten ranking globally for funding, knowledge, and talent. The city also ranked as the #4 ecosystem in overall performance, reflecting the scale of exits and investments that continue to power its growth. With thriving sectors like artificial intelligence, cybersecurity, and life sciences driving momentum, Tel Aviv remains a place where ideas, ambition, and community come together to shape what’s next.

Ron Huldai, Mayor of Tel Aviv-Yafo, said, “Tel Aviv held steady — reinforcing its position as the #4 global startup ecosystem. This consistency reflects the deep foundations of our innovation ecosystem and the strength of our tech community. In fields such as artificial intelligence, cybersecurity, and life sciences, Tel Aviv’s entrepreneurs continue to lead with agility, creativity, and ambition. In the face of complex challenges, Tel Aviv remains an open, welcoming, and resilient city — driven not only by support, infrastructure, and tools, but by the spirit that defines it: values of liberalism, creativity, and entrepreneurship. We will continue to invest whatever it takes to enable startups to grow, evolve, and succeed.”

Sectoral drivers of startup growth in Tel Aviv, AI, Cybersecurity, and Life Sciences are key strengths of Tel Aviv’s startup ecosystem, supported by international R&D investment, large-scale acquisitions, and global partnerships. In 2024–2025, AI and Cybersecurity startups secured multi-million-dollar rounds, Life Sciences grew 25% to $2.7 billion, and major players like Nvidia, Meta, and Alphabet expanded their presence in the region.

Why startups choose Tel Aviv

Tel Aviv offers a well-established startup ecosystem with more than 180 multinational R&D centers, targeted tax incentives, and coordinated public-private support. In 2025, new provisions supporting foreign investment and a planned $800 million innovation lab further reinforced the city’s role as a global hub for early-stage growth and scientific advancement.

“There's no question in my mind Israel has the highest quality entrepreneurs in the world, full stop. The probability of finding the right mix of high integrity, hard work, smarts, and hustle is better here than just about anywhere else in the world,” said Jeff Horing, Insight Partners Co-Founder and Managing Director.

This year’s report delivers fresh insights on the world’s leading innovation ecosystems, highlighting key trends, investment flows, and policy strategies driving entrepreneurial success. It features rankings of the Top 40 global startup ecosystems and Top 100 emerging ecosystems, along with regional rankings. Built on over a decade of Startup Genome’s independent research and policy expertise, and driven by a consortium of representatives spanning 65+ countries, the report provides a data-rich analysis of startup activity and investment patterns. It provides actionable guidance for policymakers, ecosystem leaders, and founders to develop evidence-based strategies that strengthen startup communities - the world’s most powerful engine of job creation and economic growth.

“Tel Aviv’s position as the #4 Global Startup Ecosystem continues to impress as it maintains its edge against cities three to ten times its size. This attests to the strength of its innovation ecosystem and the commitment of its leaders to fostering startup success. We value our ongoing collaboration with Tel Aviv Global,” said JF Gauthier, Founder & CEO, Startup Genome.